Key Points:
- Two CPSC commissioners are urging an investigation into safety practices of discount e-commerce platforms like Temu and Shein.
- The platforms have surged in popularity in the U.S., offering low-cost apparel, electronics, and home goods.
- “We seek to better understand these firms, particularly their focus on low-value direct-to-consumer,” wrote the commissioners.
Two members of the U.S. Consumer Product Safety Commission (CPSC) are calling for an investigation into the safety standards of e-commerce giants Shein and Temu, citing concerns about the sale of hazardous baby and toddler products.
In a letter sent on Tuesday, CPSC Commissioners Peter Feldman and Douglas Dziak urged the agency to closely examine the safety protocols of these platforms, specifically focusing on their compliance with U.S. regulations, relationships with third-party sellers, and the claims they make when importing products.
“We seek to better understand these firms, particularly their focus on low-value direct-to-consumer — sometimes called de minimis — shipments and the enforcement challenges when firms with little or no U.S. presence distribute consumer products through these platforms,” wrote Feldman and Dziak.
Last month, The Information reported that Temu was offering padded crib bumpers, which have been banned in the U.S. due to suffocation risks, while Shein was found selling children’s hoodies with drawstrings, considered a significant safety hazard.
A spokesperson for Shein responded, saying, “Customer safety is a top priority,” adding that the company is investing millions in compliance and has partnered with testing agencies to improve product safety.
Similarly, a representative from Temu emphasized, “Our interests are aligned with the U.S. Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will cooperate fully with any investigation.”
Temu and Shein have quickly become household names in the U.S., offering ultra-cheap goods sourced directly from China. Temu, owned by PDD Holdings, entered the U.S. market in 2022, launching a high-profile marketing campaign, including a Super Bowl ad. Shein, which debuted in the U.S. in 2017, has also flooded digital platforms with advertisements, contributing to its current valuation of $66 billion.
Both companies leverage their relationships with Chinese manufacturers and utilize the de minimis exemption, a trade loophole allowing goods under $800 to enter the U.S. duty-free.
CPSC officials have expressed concern about the rapid rise of these platforms and have requested additional funding to enhance their ability to monitor safety practices in the e-commerce sector.
Congress is also turning its attention to Shein and Temu. In April, a congressional commission released a report that highlighted issues with the platforms, including product safety concerns, the use of forced labor, and the exploitation of trade loopholes.
